Auger Torque Europe Limited - Period Ending 2023-12-31

AUGER TORQUE EUROPE LIMITED - Company Information

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Registration number: 03537549

Auger Torque Europe Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

Auger Torque Europe Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 7
Profit and Loss Account	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 21

Auger Torque Europe Limited

Company Information

Directors

R Olbrich

T Friedrich

Company secretary

R Payne

Registered office

Shipton Downs Farm
Hazleton
Cheltenham
GL54 4DX

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

Auger Torque Europe Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is the manufacture and distribution of hydraulic earthmoving attachments.

Fair review of the business

The directors are pleased with the results for the year and consider the financial position at the year end to be very satisfactory.

The results for the year, which are set out in the profit and loss account, show operating profit for the year of £1,563,399 (2022 - £1,790,019). Dividends of £4,000,000 were paid during the year (2022 - £4,200,000).

The Company has fixed assets valued in the financial statements at cost amounting to £1,798,504 (2022 - £1,771,260), Trade debtors of £662,790 (2022 - £519,779) and trade creditors of £350,153 (2022 - £337,541).

While the operations of the company continue to have been impacted by the worldwide pandemic, the management of the company have been able to maintain the companies activities, turnover and margins at levels that are consistent with previous years.

The company's key financial and other performance indicators during the year were as follows:

	2023	2022	%
	£'000	£'000	Change

Turnover	12,501	17,202	-27.3%

Operating profit	1,620	1,790	-9.5%

In addition to financial performance indicators the company monitors the gross margin achieved on its sales and key balance sheet ratios to ensure that the business is aware of and can adapt to changes in its trading environment.

Principal risks and uncertainties

The management of the business and the execution of the group’s strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to competition.

Approved by the Board on 30 April 2024 and signed on its behalf by:

T Friedrich
Director

Auger Torque Europe Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

A Brydon (ceased 27 March 2024)

R Olbrich

T Friedrich

Going concern

The directors are fully aware of their duty to assess the company's going concern status and have attended to this with particular care in consideration of the current economic and industrial outlook. The current economic conditions create uncertainty, particularly over the level of demand for the company's products. The company currently meets day-to-day cash requirements without the need for external financing.

The directors have prepared and reviewed the company's forecasts and projections and have taken into account possible changes in trading performance by considering all reasonable scenarios and the current funding position.

The directors have concluded that the company has adequate resources to meet its liabilities and the financial statements have been prepared accordingly on a going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to remain in office.

Approved by the Board on 30 April 2024 and signed on its behalf by:

T Friedrich
Director

Auger Torque Europe Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and
•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auger Torque Europe Limited

Independent Auditor's Report to the Members of Auger Torque Europe Limited

Opinion

We have audited the financial statements of Auger Torque Europe Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Auger Torque Europe Limited

Independent Auditor's Report to the Members of Auger Torque Europe Limited

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

•	reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

•	performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;.

•	enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

•	reading minutes of meetings of those charged with governance.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Auger Torque Europe Limited

Independent Auditor's Report to the Members of Auger Torque Europe Limited

Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

1 May 2024

Auger Torque Europe Limited

Profit and Loss Account for the Year Ended 31 December 2023

	Note	2023 £	2022 £
Turnover	3	12,500,889	17,201,507
Cost of sales		(7,437,931)	(11,278,406)
Gross profit		5,062,958	5,923,101
Distribution costs		(333,062)	(1,267,540)
Administrative expenses		(3,166,499)	(2,949,698)
Other operating income	4	56,351	84,156
Operating profit	5	1,619,748	1,790,019
Other interest receivable and similar income	6	2,824,319	2,822,936
Interest payable and similar charges		(434)	(396)
Profit before tax		4,443,633	4,612,559
Taxation	9	(361,223)	(185,696)
Profit for the financial year		4,082,410	4,426,863

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

Auger Torque Europe Limited

(Registration number: 03537549)
Balance Sheet as at 31 December 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	10	222,329	248,273
Tangible assets	11	376,611	323,425
Investments	12	1,199,562	1,199,562
		1,798,502	1,771,260
Current assets
Stocks	13	1,323,801	1,781,404
Debtors	14	1,519,175	865,845
Cash at bank and in hand	15	1,774,210	2,193,215
		4,617,186	4,840,464
Creditors: Amounts falling due within one year	16	(1,200,453)	(1,486,008)
Net current assets		3,416,733	3,354,456
Total assets less current liabilities		5,215,235	5,125,716
Provisions for liabilities	17	(72,184)	(65,075)
Net assets		5,143,051	5,060,641
Capital and reserves
Called up share capital	19	10,000	10,000
Share premium reserve		3,998	3,998
Retained earnings		5,129,053	5,046,643
Total equity		5,143,051	5,060,641

Approved and authorised by the Board on 30 April 2024 and signed on its behalf by:

T Friedrich
Director

Auger Torque Europe Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 January 2023	10,000	3,998	5,046,643	5,060,641
Profit for the year	-	-	4,082,410	4,082,410
Dividends	-	-	(4,000,000)	(4,000,000)
At 31 December 2023	10,000	3,998	5,129,053	5,143,051

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 January 2022	10,000	3,998	4,819,780	4,833,778
Profit for the year	-	-	4,426,863	4,426,863
Dividends	-	-	(4,200,000)	(4,200,000)
At 31 December 2022	10,000	3,998	5,046,643	5,060,641

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

General information

The company is incorporated and domiciled in England and Wales.

The address of its registered office is:
Shipton Downs Farm
Hazleton
Cheltenham
GL54 4DX

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Exemption from preparing group accounts

The financial statements contain information about Auger Torque Europe Limited as an individual company and do not contain consolidated financial information as the parent of a group.

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its ultimate parent, Lifco AB, a company incorporated in Sweden.

The company is a member of a group where the parent, Lifco AB, prepared consolidated financial statements. They have therefore taken advantage of the Statement of Cash Flows and financial instruments disclosure exemptions as permitted by FRS102.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.
Non-monetary items measured in items of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold property	10% straight line
Plant and machinery	25% reducing balance
Fixtures, fittings and equipment	10%-33% reducing balance
Motor vehicles	25% reducing balance

Intangible assets

Licences, knowhow and customer lists acquired in a business combination are recognised at fair value at the acquisition date.

Licences, knowhow and customer lists have a finite useful life and are carried at cost less accumulated amortisation.

Trademarks, patents and licences are recognised at cost. They have a finite useful life and are carried at cost less amortisation.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Licences, knowhow and customer lists	10 years straight line
Trademarks, patents and licences	10 years straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initiallymeasured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability ismeasured at the present value of the future payments discounted at amarket rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurredafter initial recognition, theestimated recoverablevalue of theasset has been reduced. The recoverable amount of an asset is thehigher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease canbe related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

	2023 £	2022 £
Sale of goods and services	12,500,889	17,201,507

The analysis of the company's revenue for the year by market is as follows:

	2023 £	2022 £
UK	2,483,496	3,418,378
Europe	7,952,893	11,605,301
Rest of world	2,064,500	2,177,828
	12,500,889	17,201,507

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Other operating income

The analysis of the company's other operating income for the year is as follows:

	2023 £	2022 £
Miscellaneous other operating income	56,351	84,156

Other income is made up of Research and Development Expenditure Credits.

Operating profit

Arrived at after charging/(crediting)

	2023 £	2022 £
Depreciation expense	104,647	84,117
Amortisation expense	25,944	22,161
Research and development cost	45,252	28,380
Operating lease expense - total premises cost	121,521	109,977
(Profit)/loss on disposal of tangible fixed assets	-	17,268

Other interest receivable and similar income

	2023 £	2022 £
Interest income on bank deposits	124,217	49,740
Dividend income	2,700,102	2,773,196
	2,824,319	2,822,936

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2023 £	2022 £
Wages and salaries	1,489,937	1,593,435
Social security costs	171,220	145,981
Pension costs, defined contribution scheme	37,460	30,783
	1,698,617	1,770,199

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2023 No.	2022 No.
Production	12	13
Administration and support	19	19
	31	32

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

	2023 £	2022 £
Remuneration	242,802	280,372
Contributions paid to money purchase schemes	5,688	5,500
	248,490	285,872

Taxation

Tax charged/(credited) in the profit and loss account

	2023 £	2022 £
Current taxation
UK corporation tax	391,073	220,550
UK corporation tax adjustment to prior periods	(36,959)	(35,077)
	354,114	185,473
Deferred taxation
Arising from origination and reversal of timing differences	7,109	2,466
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods	-	(2,243)
Total deferred taxation	7,109	223
Tax expense in the income statement	361,223	185,696

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

	2023 £	2022 £
Profit before tax	4,443,633	4,612,559
Corporation tax at standard rate	1,045,142	876,386
Effect of revenues exempt from taxation	(635,079)	(526,907)
Effect of expense not deductible in determining taxable profit (tax loss)	843	474
UK deferred tax expense relating to changes in tax rates or laws	420	592
Deferred tax credit from unrecognised temporary difference from a prior period	-	(2,243)
Decrease in UK and foreign current tax from adjustment for prior periods	(36,959)	(35,077)
Tax increase/(decrease) from effect of capital allowances and depreciation	109	(974)
Tax decrease from effect of adjustment in research and development tax credit	(13,253)	(6,767)
Other tax effects for reconciliation between accounting profit and tax expense (income)	-	(119,788)
Total tax charge	361,223	185,696

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax

Deferred tax assets and liabilities

2023	Liability £
Fixed asset timing differences	55,820

2022	Liability £
Fixed asset timing differences	48,711

Intangible assets

	Trademarks, patents and licenses £
Cost
At 1 January 2023 and 31 December 2023	259,426
Amortisation
At 1 January 2023	11,153
Amortisation charge	25,944
At 31 December 2023	37,097
Carrying amount
At 31 December 2023	222,329
At 31 December 2022	248,273

Tangible assets

	Leasehold improvements £	Furniture, fittings and equipment £	Motor vehicles £	Total £
Cost
At 1 January 2023	240,544	168,710	221,623	630,877
Additions	14,065	58,263	85,505	157,833
At 31 December 2023	254,609	226,973	307,128	788,710
Depreciation
At 1 January 2023	135,126	101,161	71,165	307,452
Charge for the year	24,470	22,022	58,155	104,647
At 31 December 2023	159,596	123,183	129,320	412,099
Carrying amount
At 31 December 2023	95,013	103,790	177,808	376,611
At 31 December 2022	105,418	67,549	150,458	323,425

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Investments in subsidiaries

	2023 £	2022 £
Investments in subsidiaries	1,199,562	1,199,562

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2023	2022
Subsidiary undertakings
Auger Torque China Mfg	China	Ordinary	51%	51%
Auger Torque Australia Limited	Australia	Ordinary	100%	100%

Subsidiary undertakings

Auger Torque China Mfg

The principal activity of Auger Torque China Mfg is manufacturing. The profit for the financial period of Auger Torque China Mfg was £447,240 and the aggregate amount of Capital and reserves at the end of the period was £2,177,830.

Auger Torque Australia Limited

The principal activity of Auger Torque Australia Limited is manufacturing and distribution. The profit for the financial period of Auger Torque Australia Limited was £2,222,711 and the aggregate amount of Capital and reserves at the end of the period was £2,600,201.

Stocks

	2023 £	2022 £
Finished goods and goods for resale	1,323,801	1,781,404

Debtors

		2023 £	2022 £
Trade debtors		662,790	519,779
Receivables from related parties	21	349,474	194,731
Other receivables		14,067	6,770
Prepayments		340,077	107,076
Corporation tax asset	9	152,767	37,489
Total current trade and other receivables		1,519,175	865,845

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Cash and cash equivalents

	2023 £	2022 £
Cash on hand	366	366
Cash at bank	1,773,844	2,192,849
	1,774,210	2,193,215

Creditors

	2023 £	2022 £
Due within one year
Trade creditors	360,153	337,541
Amounts due to related parties	446,015	662,492
Social security and other taxes	26,084	66,933
Outstanding defined contribution pension costs	11,791	-
Other creditors	73,090	72,548
Accrued expenses	283,320	346,494
	1,200,453	1,486,008

Other provisions

	Deferred tax £	Warranties £	Total £
At 1 January 2023	48,711	16,364	65,075
Increase (decrease) in existing provisions	7,109	-	7,109
At 31 December 2023	55,820	16,364	72,184

Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £37,460 (2022 - £30,783).

Contributions totalling £11,791 (2022 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

Share capital

Allotted, called up and fully paid shares

	2023		2022
	No.	£	No.	£
Ordinary of £1 each	10,000	10,000	10,000	10,000

Auger Torque Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Obligations under leases

The total of future minimum lease payments is as follows:

	2023 £	2022 £
Not later than one year	107,052	107,052
Later than one year and not later than five years	8,921	115,973
	115,973	223,025

The amount of non-cancellable operating lease payments recognised as an expense during the year was £87,252 (2022 - £84,001).

Related party transactions

During the year the company made sales of £6,497,781 (2022 - £10,136,634) and incurred expenditure of £5,877,897 (2022 - £11,774,453) with other companies in the same group. At 31 December 2023 the company was due £349,474 (2022 - £194,731) and owed £446,015 (2022 - £662,492) with those group companies.

Dividends

	2023 £	2022 £
Dividends paid	4,000,000	4,200,000

Parent and ultimate parent undertaking

The company's immediate parent is Kinshofer Gmbh, incorporated in Germany.

The ultimate parent is Carl Bennet AB, incorporated in Sweden.

The most senior parent entity producing publicly available financial statements is Carl Bennet AB. These financial statements are available upon request from Box 7171 SE-402, 33 Gӧteborg, Sweden

The ultimate controlling party is Carl Bennet.